YOUR FEDERALLY INSURED FUNDS
WHAT IS NCUA?
The National Credit Union Administration, commonly referred to
as NCUA, is an independent agency of the United States government
that regulates, charters and supervises federal credit
unions. NCUA also operates and manages the National Credit
Union Share Insurance Fund (NCUSIF). Backed by the full faith and
credit of the U.S. government, the NCUSIF insures the accounts
of millions of account holders in all federal credit unions and the
vast majority of state-chartered credit unions.
Members have full NCUSIF coverage at each federally insured
credit union where they are qualified members. While the
NCUSIF coverage protects members at all federally insured
credit unions from losses on a broad spectrum of savings and
share draft products, it does not cover losses on money invested
in mutual funds, stocks, bonds, life insurance policies, and
annuities offered by affiliated entities.
DOES THE NCUSIF PROVIDE ADDITIONAL COVERAGE?
All members of federally insured credit unions have options for
coverage that is separate from and in addition to the coverage
available to their single ownership accounts.
Members with traditional and Roth Individual Retirement
Accounts (IRAs) and KEOGH retirement accounts at federally
insured credit unions have additional coverage available at
each federally insured credit union where they qualify and
become members. The NCUSIF insures traditional and Roth
IRAs for $250,000 in the aggregate at each credit union.
Additionally, NCUA insures KEOGH accounts separately in
the aggregate to $250,000 at each credit union.
Retirement account insurance protection is separate and
apart from insurance coverage on other credit union accounts.
For example, if you have a regular share account,
an IRA, and a KEOGH at the same credit union, the NCUSIF
insures the regular share account for up to $250,000, the
IRA for up to an additional $250,000, and the KEOGH for
up to an additional $250,000.
Joint accounts are owned by two or more people who have
equal rights to withdraw money from the account and no
beneficiaries are named. These accounts can include regular
shares, share drafts (similar to checking), money market
accounts, and share certificates. The NCUSIF provides
each joint account holder with $250,000 coverage for their
aggregate interests at each federally insured credit union.
WHY IS NCUSIF SHARE INSURANCE COVERAGE IMPORTANT?
Share insurance coverage offered through the NCUSIF protects
members against losses if a federally insured credit union should
fail. You can confidently join and conduct business with federally
insured credit unions because no member has ever lost a penny
from accounts insured by the NCUSIF.
Historically, insured funds are available to members within just a
few days after the closing of an insured credit union. Failures of
federally insured credit unions are rare because only those with
sound operational standards qualify to receive NCUSIF coverage.
NCUA also regularly reviews the operations of all federal credit
unions and works closely with state regulatory authorities to
evaluate federally insured, state-chartered credit unions.
WHAT BASIC COVERAGE IS PROVIDED BY THE NCUSIF?
The NCUSIF provides all members of federally insured credit
unions with $250,000 in coverage for their single ownership accounts.
These accounts include regular shares, share drafts
(similar to checking), money market accounts, and share certificates.
Individuals with account balances totaling $250,000 or less
at the same insured credit union are fully insured.
If a person has more than $250,000 at any single credit union,
several options are available for additional share insurance coverage
because, as discussed in greater detail (right), the NCUSIF
provides separate insurance for other accounts.
The NCUSIF provides separate coverage for both revocable
and irrevocable trusts. Credit unions can establish a common
informal revocable trust payable-on-death account
without additional documentation; however, some trusts
require additional, valid documentation to qualify for
coverage. While this brochure briefly discusses how the
NCUSIF insures trusts, members should consult appropriate
professionals to properly establish and document
Revocable trust accounts may qualify for insurance coverage
of up to $250,000 per beneficiary named by the owner
(if a member of the credit union) that is separate from
the individual coverage available to the trust owner (also
referred to as grantor or settlor). For example, if a person
with a revocable trust for $750,000 names a spouse and
two children as beneficiaries, the entire $750,000 would
have separate NCUSIF coverage ($250,000 per beneficiary).
This coverage is separate from the coverage provided to
the other types of accounts held by the trust’s owner at
the same federally insured credit union.
IRREVOCABLE TRUSTS have separate coverage based on the
beneficial interest. The interest of each beneficiary in an
account (or accounts) established as an irrevocable trust
has separate NCUSIF coverage of up to $250,000. In cases
where a beneficiary has an interest in more than one trust
arrangement created by the same owner, the interests
of the beneficiary in all accounts established under such
trusts are added together for insurance purposes and
insured for a total of up to $250,000.
HOW DO I KNOW MY CREDIT UNION IS FEDERALLY INSURED?
Federally insured credit unions are required to indicate their
insured status in their advertising and to display the official
NCUSIF insurance sign in their offices and branches. For a
complete directory of federally insured credit unions, visit ncua.gov
NCUA SHARE INSURANCE ESTIMATOR
The NCUA Electronic Share Insurance Estimator is available
to help members better understand the protection offered
by the NCUSIF. This interactive site allows users to input data
to compute the amount of NCUSIF coverage available under
different account scenarios. This resource is available at mycreditunion.gov/estimator
The standard share insurance amount is $250,000 per share owner, per insured credit union,
for each account ownership category. The $250,000 standard share insurance account became
permanent through the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.